IBM revenue drops 13.7%, net income dips 16.6%

IBM today reported 13.7 percent decrease in revenue to $20.8 billion and 16.6 percent drop in net income to $3.5 billion in the second quarter of 2015.

Currency, an increase in workforce rebalancing charges, and a year-earlier gain from the divestiture of the customer care outsourcing business, have impacted IBM.

“We expanded margins, continued to innovate across our portfolio and delivered strong growth in our strategic imperatives of cloud, analytics and engagement, which are becoming a significant part of our business,” said Ginni Rometty, IBM chairman, president and chief executive officer.

IBM said revenues from the company’s strategic imperatives — cloud, analytics, and engagement — increased more than 20 percent year-to-date.

Total cloud revenues increased more than 50 percent year-to-date, and is $8.7 billion over the last 12 months, adjusted for the divested System x business. The annual run rate for cloud delivered as a service — a subset of the total cloud revenue — increased to $4.5 billion from $2.8 billion in the second quarter of 2014.

IBM said revenues from business analytics increased more than 10 percent year-to-date. Revenues from mobile more than quadrupled, and social revenues increased more than 30 percent, both year-to-date.
IBM CEO Ginni Rometty
The revenues from Americas fell 8 percent to $9.8 billion.

Revenues from Europe/Middle East/Africa dropped 17 percent to $6.6 billion.

Asia-Pacific revenues decreased 19 percent to $4.3 billion.

Revenues from the BRIC countries fell 35 percent. The BRIC performance had a negative two-point impact on IBM’s overall revenue growth rate.

Global Technology Services segment revenues fell 10 percent to $8.1 billion.

Global Business Services segment revenues decreased 12 percent to $4.3 billion.

Revenues from the Software segment fell 10 percent to $5.8 billion.

IBM revenues from IBM’s middleware products, which include WebSphere, Information Management, Tivoli, Workforce Solutions and Rational products, dropped 7 percent to $4.0 billion. Operating systems revenues of $0.4 billion were down 17 percent year-to-year, said IBM.

Revenues from the Systems Hardware segment declined 32 percent to $2.1 billion for the second quarter.

IBM said revenues from z Systems mainframe server products increased 9 percent compared with the year-ago period. Total delivery of z Systems computing power, as measured in MIPS, increased 24 percent. Revenues from Power Systems were down 1 percent. Revenues from System Storage decreased 10 percent.

Baburajan K
[email protected]